Companies on the Nasdaq are required to have a collective market value of their shares of $5 million. The bank received notice that it had fallen below that threshold in August, and was given 180 days to comply, according to a securities filing.

"Clearly we are disappointed that trading in our stock on Nasdaq has been suspended," Bank of the Carolinas CEO Stephen R. Talbert said in a statement. "Due to market conditions, we are not in a position to satisfy Nasdaq's continued listing requirements at this time. However, we remain committed to strengthening our company and focusing on the needs of our customers."

The bank has decided not to appeal the decision. Its stock will officially drop off the exchange March 5.